More and more people are HODLing Bitcoin
As per the reputable platform Glassnode, the count of individuals holding Bitcoin in their wallets is on the rise, reaching its current peak and marking the highest point to date.
Individuals who maintain their Bitcoin wallets over an extended period are commonly referred to as "long-term HODLs.
The report indicates a growing trend where an increasing number of traders are opting to hold onto their Bitcoin, with a noticeable decline in the number of individuals willing to liquidate their assets. This reluctance to sell is driven by the anticipation that the price of "crypto gold" (Bitcoin) could experience significant appreciation in the near future.
In comparison to October, the price of Bitcoin has witnessed an average increase of 10%, serving as a notable reference point for the recent positive momentum in the cryptocurrency's value.
Long-term HODL and Bitcoin Wallet
According to a study published last week on Tuesday, there has been a substantial increase over the past year in the percentage of individuals within the crypto ecosystem identifying themselves as long-term HODLs. This term refers to those who maintain their assets in their Bitcoin wallets for more than 12 months.
The study provides more detailed insights, revealing that approximately 68% of the total Bitcoin in the market has been securely stored in digital wallets for over a year. Furthermore, around 30% of crypto assets have remained untouched and unchanged for a duration exceeding five years.
The Illiquid Supply Metric is a valuable measure for approximating data on users' Bitcoin wallets, and according to this metric, it is estimated that 15.4 million bitcoins fall into the category of illiquid supply. These bitcoins exhibit minimal transfers and recorded transactions, indicating that they predominantly reside in the wallets of long-term investors and are not actively circulating on exchanges.
Why Do People Store Bitcoin in Wallets for Years?
Indeed, the price dynamics of Bitcoin often showcase a pattern of consistent growth and relative stability, which is a key factor attracting many investors to consider Bitcoin as an investment. The perceived value of Bitcoin, coupled with its limited supply and decentralized nature, has contributed to its appeal as a store of value and a potential hedge against inflation.
Bitcoin’s price is especially increasing before the Halving process occurs.
What is Bitcoin Halving?
During a halving, the reward that miners receive for successfully adding a new block to the Bitcoin blockchain is reduced by half.
The Bitcoin blockchain operates on a decentralized network, meaning it lacks a central regulatory authority. Miners, who are powerful computer devices within the network, play a crucial role in maintaining the system's integrity.
When a Bitcoin transaction is initiated, miners work to solve complex mathematical problems, ensuring the authenticity and validity of the transfer. The first miner or group of miners to successfully solve the problem confirms the transaction, which is then permanently recorded in the blockchain—a distributed and decentralized ledger.
Miners are rewarded for their work with newly minted bitcoins, and this process is known as mining. It serves the dual purpose of securing the network and creating new bitcoins in a controlled manner. This decentralized and consensus-driven approach is fundamental to the functioning and security of the Bitcoin network.
Halving is important in terms of Technical and Inflationary aspects.
If the miner receives 6.25 bitcoins as a reward by confirming the transaction, in the future, this reward will be halved and become - 3.125 BTC.
As mentioned, the value of Bitcoin is statistically increasing, and during the halving process, it is especially noticeable that the price goes up and the asset returns the investors invested in it.
After the first halving in 2012, Bitcoin indeed set a record by reaching $1,000 approximately a year later, surprising many who initially doubted such a surge.
Similarly, after the second halving in 2016, Bitcoin not only surpassed its previous all-time high but significantly exceeded expectations, reaching $20,000.
The most recent Bitcoin halving occurred in May 2020, reducing the block reward from 12.5 bitcoins to 6.25 bitcoins for miners. At that time, the price of Bitcoin was indeed fluctuating around $8,600.
That is the reason why many investors have kept Bitcoin in their wallets for years, waiting for an unprecedented increase in price, in this case not doubling, but even climbing to $100,000.
the next Bitcoin halving was indeed expected in April 2024. Your speculation about dormant assets in Bitcoin wallets becoming more active during this period aligns with the historical context surrounding halving events.
Buying Bitcoin and Price of the Asset:
As of now, according to CoinMarketCap, 1 Bitcoin can be traded for around $ 38,000, but keep in mind that it’s not mandatory to acquire the whole BTC instead, you can buy a portion of it. For that, there are two main ways in Georgia:
- Cryptomat – is a Bitcoin Machin that you can see in Big Store and Shopping Centers. Here, you just indicate the amount of Bitcoin you want to buy, indicate your Bitcoin Wallet, and place Georgian Lari. That’s it.
- Crypto Trading Platform – If you are searching for a way to buy Crypto from home, with the cheapest commissions, the crypto trading platform is just for you. Here, you can buy Bitcoin using two ways:
Convert: In this way, buying BTC is the easiest. You just indicate the desired amount of asset, and click Buy, that’s it.
Keep in mind that Convert is useful for beginners and for those, who want to buy crypto instantly without delay.
Spot Trade: Think of an exchange as a place where people like you who want to buy or sell Bitcoin gather, negotiate a price, agree on the amount of assets to be exchanged, and then make a transaction through the intermediary of the exchange, which is completely safe and secure.
Using Spot Trade properly is for a little bit of experienced traders who want to acquire Bitcoin at the best price possible.